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Microsoft Hikes Xbox Game Pass Ultimate Price by 50% as Service Expands

Microsoft’s Xbox division has announced a significant 50% price increase for its top-tier Game Pass Ultimate subscription, raising the monthly fee from $19.99 to $29.99. The move comes as the company broadens the service’s offerings with new first-day game releases, enhanced cloud streaming, and an overhauled rewards system designed to strengthen its position in the growing “games-as-a-service” market.

According to Xbox’s Wednesday announcement, Game Pass Ultimate subscribers will now gain access to more than 75 new first-day releases each year, including blockbuster titles such as Call of Duty: Black Ops 7 and Ninja Gaiden 4.

The price hike follows a similar move in hardware: Microsoft last month raised the prices of its Xbox consoles in the United States for the second time this year, citing tariff-driven cost pressures and inflation in supply chains.

The expansion of Game Pass Ultimate reflects Microsoft’s long-term strategy to pivot toward subscription-based and cloud-driven gaming as traditional console sales slow amid economic headwinds. By integrating cloud gaming access across tiers, the company aims to attract a wider base of mobile and PC gamers who prefer flexibility over physical ownership.

In addition to the Ultimate tier change, Microsoft has rebranded its lower tiers — now called “Essential” and “Premium” — and introduced unlimited cloud gaming to both. Prices for these two plans will remain unchanged.

Game Pass, which first launched in 2017, has become a central pillar of Xbox’s business strategy, helping Microsoft compete with Sony’s PlayStation Plus and Nintendo’s online services. Analysts say the latest expansion and pricing update position Xbox more firmly in the subscription entertainment ecosystem, where consistent monthly revenue and cross-device playability are key to long-term growth.

Industry experts note that while the price increase could prompt some cancellations, the addition of high-value titles and advanced features may offset churn, particularly among dedicated players.

“Microsoft is betting that players will accept higher costs in exchange for convenience and exclusive access to major releases,” said one industry analyst. “It’s a high-stakes move that could redefine how gamers view value in digital entertainment.”

The new pricing structure goes into effect immediately for new subscribers, while existing members will see the changes reflected in their billing cycles later this year.

From Riyadh to Silicon Valley — How Electronic Arts Became the Centerpiece of Saudi Arabia’s Gaming Ambitions

What began as an idea inside a spring brainstorming session between Silver Lake’s Egon Durban and Jared Kushner, son-in-law of U.S. President Donald Trump, has evolved into the world’s largest leveraged buyout — a $55 billion deal for Electronic Arts (EA) that now sits at the heart of Saudi Arabia’s Vision 2030.

Backed by the Public Investment Fund (PIF), the transaction grants the Saudi sovereign wealth fund a majority stake in EA, while Kushner’s private-equity firm Affinity Partners will own about 5 percent. According to LSEG data, PIF already held nearly 10 percent of EA before the acquisition. The buyout gives Silver Lake a stronger foothold in global gaming and entertainment, and provides Saudi Arabia with a cultural asset aligned with its plan to diversify beyond oil.

Kushner reportedly played a key role in brokering the deal. “I grew up playing EA games and now play them with my kids,” he said in the announcement. Silver Lake’s Durban called EA “a special company” and promised to expand its reach and innovation.

Saudi Arabia’s Gaming Power Play

Crown Prince Mohammed bin Salman, a self-proclaimed gaming enthusiast, has said he wants the kingdom to become “the global hub for games and esports” by 2030. Gaming has already generated double-digit annual returns for PIF, which is deploying an estimated $38 billion through its Savvy Games Group. PIF’s gaming investments include stakes in Activision Blizzard, Nintendo, and Take-Two Interactive.

“This isn’t just a spreadsheet deal,” said Joost van Dreunen, professor at NYU Stern. “It’s Saudi Arabia buying time, talent, and cultural clout in one shot. EA gives them the trophy IP house for Vision 2030.”

Expanding the Ecosystem

Beyond the buyout, EA will reportedly partner with Saudi Arabia’s new national esports tournament, while Qiddiya, a $1 trillion PIF “giga-project” near Riyadh, plans to host 10 million annual visitors in a gaming-focused entertainment district. The project aims to incubate 30 leading video-game studios by the end of the decade.

Financing the Megadeal

The consortium is investing $36 billion in equity, including PIF’s existing stake, and securing $20 billion in debt led by JPMorgan. EA shareholders will receive $210 per share in cash, a 25 percent premium over the pre-deal price on September 25.

While the merger allows 45 days for a higher bid, analysts see that as unlikely. “Matching it would require deep pockets and tolerance for scrutiny,” said van Dreunen. “Private equity would struggle to justify the leverage.”

Despite the deal’s scale, experts do not expect major regulatory barriers. “Given current Western-Saudi relations, reviews are likely to be box-ticking exercises rather than resistance,” noted David O’Hara of MKP Advisors.

EA’s integration into the Saudi-backed consortium underscores a pivotal shift — from Silicon Valley to Riyadh, gaming has become both a cultural export and a geopolitical tool in the kingdom’s quest to lead the global entertainment future.

Microsoft raises Xbox prices in U.S. again amid tariff pressures

Microsoft announced on Friday that it will increase U.S. prices for its Xbox consoles for the second time this year, citing rising costs tied to tariffs and supply chain pressures. The hikes take effect October 3 and will see the Xbox Series S (1TB) priced at about $450, the Series X at $650, and the special edition 2TB Galaxy Black Series X close to $800.

The move follows a May round of price increases across the U.S., Europe, Australia, and the UK. Combined, the Xbox Series X has risen by $150 in six months, straining consumer budgets already squeezed by inflation.

Microsoft said the adjustments reflect “changes in the macroeconomic environment” rather than opportunism. Analysts agreed tariffs are the driving factor. “Hardware is being repriced to absorb new trade pressures,” said Joost van Dreunen, games professor at NYU Stern.

The hikes come as Sony raised U.S. prices on its PlayStation 5 consoles last month, with the PS5 Pro now retailing for $749.99. By contrast, Microsoft said it will not raise prices on controllers, headsets, or hardware in other global markets.

Industry forecasts had expected console sales to drive growth in 2025 alongside major game releases like Grand Theft Auto VI and Nintendo’s anticipated Switch 2. However, repeated price hikes and delayed titles may dampen momentum, clouding the near-term outlook for the video game sector.